Power Home Remodeling Expands Financing Offshoot with $400M from Goldman Sachs

Executive leadership from top home improvement company Power Home Remodeling announced a massive expansion of its financial offshoot, Stream Innovations, earlier this month. Stream secured a $400 million facility from Goldman Sachs in Pennsylvania, making way for five times growth, according to the release.

Stream Innovations, previously Stream Financial, is the integrated point-of-sale fintech provider for Power and was founded in 2020. Its four founding members include Power COO Timothy Wenhold, co-CEO Corey Schiller, co-CEO Asher Raphael, and Founder Adam Kaliner. Stream’s CEO is PJ Singh, who is not part of Power leadership but brings a resume with decades of financial experience, ranging from Capital One to HSBC.

The major investment from Goldman Sachs and plans for fast growth from Stream indicate projected strength in home improvement demand and homeowners’ growing need for financing amid inflation rates and rising costs. 

Stream says it focuses on financing sustainability-related, energy-efficient home improvement projects. Power Home Remodeling, which exceeds $1 billion in annual sales, offers windows, roofing, siding, doors, insulation, and solar. The national home improvement company opened its 20th location in Fort Lauderdale, Fla. and 21st location in Las Vegas this May.

Growth Ahead for Stream

Stream manages $670 million in loans and foresees that rising to more than $800 million in home improvement loans this year, according to the release. 

“A financing of this size from one of the world’s top financial firms is not only validation of our vision and work to date, but also a substantial advantage coming remarkably early in our company’s history that will fuel growth and innovation for years to come,” said Stream CEO Singh.

The warehouse supported by Goldman Sachs moves Stream to a more centralized location near Philadelphia that will help with hiring, says Singh. Stream currently has 23 staff members, but expects five times more through this expansion.

And a New Name

The expansion coincides with a renaming for Stream, which took on its new ending earlier this month, dropping “Financial” and adding “Innovations.” This reflects the company’s focus on its technology stack. 

"[Stream] combines best-in-class origination technology and processes with an empathetic servicing approach, providing confidence in the quality of loans we underwrite and service," said Singh.

Integrated Financing

With this move, Power becomes the latest home improvement player to embrace an integrated financing model.

In May this year, trades software provider ServiceTitan announced a partnership with finance company Synchrony for integrated financing services.

This integration allows for ServiceTitan contractors to offer a more seamless financing application and approval process, according to the release. The entire process will remain inside ServiceTitan’s platform to create an improved customer experience.